Very high tax liabilities

Hi everyone,

I work in a Family Office as a portfolio manager,

At the beginning of the year, a client moved one of his accounts from “x” bank to “y” bank but there were some securities that cannot be transferred because they are exclusively securities managed by the “x” bank, then we had to sell them triggering a large tax liability to the client.

I usually offset these gains by selling some securities with losses (which we don’t see potential) but on this occasion, the performance of practically all securities going well.

Does anyone know a strategy besides tax loss harvesting to reduce high tax liabilities (taking into account that all other securities performing well)?

Thank you in advance!

Yeah. It’s called “don’t sell in the first place”. Some people call it “being proactive”. Others call it “thinking ahead”.

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Depreciation of hard assets like real estate or other property.

Generally speaking, there are three ways to get tax deductions:

  1. Spend money
  2. Lose money
  3. Kick the tax liability can down the road.

#3 sometimes has merit to it.